INTRODUCTION DEFORESTATION AND FOREST DEGARADTION IN INDONESIA INTRODUCTION

CONTENTS Page

I. INTRODUCTION

3 II. LAND USE, FOREST POLICY AND GOVERNANCE 3

III. DEFORESTATION AND FOREST DEGARADTION IN INDONESIA

5 IV. REGULATORY FRAMEWORK TO TACKLE DEFORESTATION AND FOREST DEGRADATION CHALLENGES 6 V. REDD AND READINESS STRATEGY 7 Lists of Figures Figure 1. IFCA process in the National Climate Change Context prior COP-13 Figure 2. REDD Indonesia Road Map Figure 3. REDD Indonesia Framework Lists of Tables Table 1. Stakeholders communication for each component of REDDI framework Table 2. Summary of REDD Indonesia Strategy Table 3. Schedule of Activities for Readiness at the National and Sub-national Level Table 4. Budget Requirement for Readiness Activities and Possible Financial Sources 2

I. INTRODUCTION

Indonesia is one of the three largest tropical forest countries. The use of forest resources in Indonesia follows the rules applied to each of the four forest functionscategories. First, conservation forest, managed to conserve biological diversity, the source of genetic resources needed for food crops, medicinal plants, wood and non-wood forest species domestication. Second, protection forest, important to maintain hydrological function, watershed protection and soil conservation. Third, production forest, provides timber and non-timber products, and is managed through selective cutting for natural forest and clear cutting for plantation forests. The forth category is conversion forest, forest area which can be converted for other land uses. About 48 million people live in and surrounding Indonesia’s forests. Around 6 million Indonesians make their living directly from forests. The government has made extensive efforts to accommodate community rights in forest management through forestry regulations and laws. Wood products contributed significantly to Indonesia’s economic growth , employment and exports, especially between 1980s – 1990s. Foreign exchange earnings from forest product exports were estimated as US 1.2 billion in 1985. Since then the composition of exported forest products has shifted from logs to processed products such as sawn timber, plywood, panels, furniture and pulp and paper products. By 2005 the reported level of forest commodity exports had risen to US 5 billion. Along with deforestation problem in the tropics, Indonesia has lost approximately 1.7 million ha of its forest per year during the period of 1985 – 1997. The highest forest lost occurred during 1997-2000, reaching the figure of 2.8 million ha per year. The latest published data MoF, 2008 showed that net forest lost has decreased during 2003-2006, reaching about 1.17 million ha. Volume of harvested wood products decreased from 26.2 million m 3 in 1990 to 11.2 million m 3 in 2005. The importance of non wood forest products increased during the same period food products, medicinal plants, rattan etc. According to FAO 2005 it was reported that the volume of fuel wood declined from 357.000 m 3 in 1990 to 171.000 m 3 in 2000 and only 79.000 m 3 in 2005. Sustainability of forest resources is crucial for the continuation of national development. Sustainable management of forest resources is a form of mitigation and adaptation measures, which is survival issue for Indonesia. As a country with thousands of island and high dependency on agricultural sector agriculture, forestry, fishery, livestock, Indonesia is vulnerable to climate change not only from environmental aspect but also economic and social.

II. LAND USE, FOREST POLICY AND GOVERNANCE 1. Land Use